GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
NYSE:GVA - New York Stock Exchange, Inc. - US3873281071 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to GVA. GVA was compared to 48 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. GVA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make GVA suitable for value investing!
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
In the past year GVA had a positive cash flow from operations.
Of the past 5 years GVA 4 years were profitable.
Each year in the past 5 years GVA had a positive operating cash flow.
1.2 Ratios
GVA has a better Return On Assets (4.18%) than 67.39% of its industry peers.
GVA has a Return On Equity of 12.45%. This is in the better half of the industry: GVA outperforms 69.57% of its industry peers.
GVA has a Return On Invested Capital (6.03%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GVA is significantly below the industry average of 11.84%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 12.45% | ||
| ROIC | 6.03% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.15%, GVA is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
In the last couple of years the Profit Margin of GVA has grown nicely.
GVA has a Operating Margin (4.96%) which is comparable to the rest of the industry.
The Gross Margin of GVA (14.29%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.96% | ||
| PM (TTM) | 3.15% | ||
| GM | 14.29% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
GVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GVA has been reduced compared to 1 year ago.
Compared to 5 years ago, GVA has less shares outstanding
Compared to 1 year ago, GVA has a worse debt to assets ratio.
2.2 Solvency
GVA has an Altman-Z score of 3.16. This indicates that GVA is financially healthy and has little risk of bankruptcy at the moment.
GVA has a better Altman-Z score (3.16) than 60.87% of its industry peers.
GVA has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as GVA would need 2.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.31, GVA is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that GVA is somewhat dependend on debt financing.
GVA's Debt to Equity ratio of 0.73 is in line compared to the rest of the industry. GVA outperforms 41.30% of its industry peers.
Even though the debt/equity ratio score it not favorable for GVA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.66
WACC9.12%
2.3 Liquidity
GVA has a Current Ratio of 1.66. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.66, GVA is doing good in the industry, outperforming 71.74% of the companies in the same industry.
GVA has a Quick Ratio of 1.56. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA's Quick ratio of 1.56 is fine compared to the rest of the industry. GVA outperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
GVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.07%, which is quite impressive.
The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
The Revenue has grown by 14.20% in the past year. This is quite good.
Measured over the past years, GVA shows a small growth in Revenue. The Revenue has been growing by 6.57% on average per year.
EPS 1Y (TTM)29.07%
EPS 3Y125.44%
EPS 5Y32.75%
EPS Q2Q%50%
Revenue 1Y (TTM)14.2%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.67%
3.2 Future
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 21.98% on average per year.
The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y34.07%
EPS Next 2Y27.47%
EPS Next 3Y21.98%
EPS Next 5YN/A
Revenue Next Year7.68%
Revenue Next 2Y6.89%
Revenue Next 3Y5.7%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.35 indicates a rather expensive valuation of GVA.
Compared to the rest of the industry, the Price/Earnings ratio of GVA indicates a somewhat cheap valuation: GVA is cheaper than 73.91% of the companies listed in the same industry.
GVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.
The Price/Forward Earnings ratio is 15.18, which indicates a correct valuation of GVA.
82.61% of the companies in the same industry are more expensive than GVA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, GVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 15.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued a bit cheaper than 78.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GVA is valued cheaper than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 10.64 |
4.3 Compensation for Growth
GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GVA may justify a higher PE ratio.
GVA's earnings are expected to grow with 21.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)0.62
EPS Next 2Y27.47%
EPS Next 3Y21.98%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 1.87, GVA pays a better dividend. On top of this GVA pays more dividend than 84.78% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has been paying a dividend for at least 10 years, so it has a reliable track record.
GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years32
5.3 Sustainability
18.06% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP18.06%
EPS Next 2Y27.47%
EPS Next 3Y21.98%
82.2
-2.37 (-2.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners118.59%
Inst Owner Change-87.15%
Ins Owners0.95%
Ins Owner Change-3.81%
Market Cap3.59B
Analysts74.29
Price Target105.06 (27.81%)
Short Float %10.96%
Short Ratio8.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP18.06%
Div Incr Years0
Div Non Decr Years32
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.04%
Min EPS beat(2)-17.71%
Max EPS beat(2)-4.36%
EPS beat(4)1
Avg EPS beat(4)-3.24%
Min EPS beat(4)-30.91%
Max EPS beat(4)40.04%
EPS beat(8)3
Avg EPS beat(8)-215.82%
EPS beat(12)5
Avg EPS beat(12)-145.97%
EPS beat(16)6
Avg EPS beat(16)-125.08%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)1.87%
Revenue beat(4)2
Avg Revenue beat(4)1.52%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)6.23%
Revenue beat(8)4
Avg Revenue beat(8)-0.04%
Revenue beat(12)8
Avg Revenue beat(12)2.51%
Revenue beat(16)8
Avg Revenue beat(16)-1.46%
PT rev (1m)4.83%
PT rev (3m)4.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.41%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 15.18 | ||
| P/S | 0.9 | ||
| P/FCF | 11.23 | ||
| P/OCF | 7.87 | ||
| P/B | 3.54 | ||
| P/tB | 5.34 | ||
| EV/EBITDA | 10.64 |
EPS(TTM)4.04
EY4.91%
EPS(NY)5.42
Fwd EY6.59%
FCF(TTM)7.32
FCFY8.9%
OCF(TTM)10.44
OCFY12.7%
SpS91.69
BVpS23.23
TBVpS15.39
PEG (NY)0.6
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 12.45% | ||
| ROCE | 9.96% | ||
| ROIC | 6.03% | ||
| ROICexc | 9.48% | ||
| ROICexgc | 12.99% | ||
| OM | 4.96% | ||
| PM (TTM) | 3.15% | ||
| GM | 14.29% | ||
| FCFM | 7.98% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score8
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 107.97% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 140.44% | ||
| Profit Quality | 253.22% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.16 |
F-Score8
WACC9.12%
ROIC/WACC0.66
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.07%
EPS 3Y125.44%
EPS 5Y32.75%
EPS Q2Q%50%
EPS Next Y34.07%
EPS Next 2Y27.47%
EPS Next 3Y21.98%
EPS Next 5YN/A
Revenue 1Y (TTM)14.2%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.67%
Revenue Next Year7.68%
Revenue Next 2Y6.89%
Revenue Next 3Y5.7%
Revenue Next 5YN/A
EBIT growth 1Y283.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year90.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y638.5%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y148.41%
OCF growth 3Y175.18%
OCF growth 5Y32.58%